Number of customers at selected digital banks in Europe 2023

In February 2018, the London-based app-only bank, Revolut, announced that they hit 1.5 million customers, a figure that has grown to 25 million by November 2022 and to 35 million by November 2023. The incredible acceleration of new customers joining digital-only banks has been mirrored by the Berlin-based N26 who have seen their customer base reaching eight million in October 2022, and fellow London-headquartered Monzo. Revolut's quickly increasing customer base can also be seen in the sharp increase in Revolut app downloads between 2019 and 2023, which was much higher than any other digital bank's.

What is an online bank?

Compared to traditional banks, which nowadays also provide extensive mobile banking services, online banks, also known as digital challenger banks, disruptor banks, or neobanks, are app-based banks without physical bank branches. Many customers see the benefits of these banks, such as lower fees, better customer service, and higher accessibility, which is possible thanks to lower operational costs.

Funding

The founder and CEO of N26 - Valentin Stalf - announced that the company’s Series D funding would be used to increase customer numbers to 5 million by the beginning of 2020, a target that they hit as of the 23rd of January 2020. The extended round in funding in July 2019 has meant that the Berlin based disruptor has become the second most funded online bank in Europe. The speed in which, fintech firms and disruptor banks have risen has seen several them reach unicorn status.